Latest Articles

Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeFOREXWhy do you lose money in forex trading?

Why do you lose money in forex trading?

1. No risk awareness, no stop loss. This is the most common. There is no stop loss in the transaction (stop loss method: point stop loss method/percentage stop loss method/hedging stop loss method), if the general direction is right, there will always be a chance to profit, or if you are lucky, it will take a while successful profit. Once the direction is reversed, the deeper the set, the deeper the account balance is, and the account has to be liquidated. (Don’t learn to not set stop loss, stop loss must not be set, even if it is bigger, it must be there)

2. Heavy positions. According to our normal transactions, we only use about 5% (up to 10%) of funds for each operation, so that we have enough funds to take risks and will not be affected by 1-2 losses. transactions and operations. However, many investors always like to hold heavy positions. Once they have 1-2 times, they will lose most of the funds in the account. The more they lose, the more anxious they are, and finally they lose their minds and regard investment as gambling. The result can be imagined.

3. Lack of technical analysis ability and trading skills. Experience is the most valuable in trading. I don’t understand the analysis of the market, and I can’t find the law of market fluctuations. I don’t realize the true nature of foreign exchange trading. The transaction is completely based on feeling and mood. In the end, I lost too much. I gradually lost confidence in investment and trading, resulting in a loss in the end. leave.

4, have technology, lack of patience. There are many such investors. They are very skilled and accurate in market analysis, but they still lose money in the end. The real reason these investors lose money is mentality. It is the courage to lose, but not the courage to gain. That is to say, when they go in the wrong direction, they set a stop loss and can also control each stop loss. But when they look in the right direction, they can’t take the profit order, and they make a profit and go out after making a small profit.